Raising Rent? Here Are The Rules
Raising rent is a common practice a landlord follows in order to keep with the rising standard of living as well as maintenance and repairing the property asks for, time and again. But, he cannot do so overnight, or whenever he deems fit. There are certain rules that a landlord needs to follow when raising the rent.
MakaaniQ shares rules of raising rent that you as a tenant should know of:
Once in a year
A landlord can increase the rent only when the lease is up for renewal. So, ensure that your rent is up for negotiation only once the fixed term of the lease comes to an end.
Talking about the lease, read it before you sign the dotted line. Look for the clause where the lease talks about raising the rent and also, the intervals at which it will be increased, time when you will be notified and also, a formal notice about the hike.
A valid reason
A raise in rent should be done with a valid reason. For instance, a change in rent across the market, a raise after more than two years, expensive living standards, or due to maintenance and repair the apartment now needs. A landlord should notify you the reason of the rise. Also, the landlord must leave a room for negotiation, too.
Notify in time
A raise in rent should be notified in time to the tenant. This allows the tenant to make up their mind whether or not they are willing to pay a higher rent or make a move. It is suggested that a landlord notifies 30 days in advance a raise of up to 10 per cent. In case the hike is more than 10 per cent the landlord must notify 60 days before it becomes applicable. A tenant should also be given a written notification of the change.
Keeping the market standards
Make sure your landlord does not ask for more than the prevalent market rate. A rise is subject to negotiation. A landlord must know that an unreasonable hike can scare away the tenant. Also, make sure the landlord compensates with better facilities for a hike in rent.
Also Read: Should You Continue To Live On Rent?